Offshore oil and gas field expansion
Arabian Gulf (also known as the Persian Gulf), Saudi Arabia
Owner and Operator
Capacity after Expansion
The Marjan oil and gas field is located in the Arabian Gulf (also known as the Persian Gulf), off the eastern coast of Saudi Arabia.
Owned and operated by Saudi Arabia’s state-owned oil and gas company Saudi Aramco, the offshore field is currently undergoing expansion under the Marjan Crude Increment Programme announced in 2017.
The expansion programme aims to increase the crude production capacity of the field by 300,000 barrels per day (bpd) and produce 360,000bpd of ethane and natural gas liquids (NGL) by processing an additional 2.5 billion standard cubic feet per day (Bscfd) of gas produced from the field.
The Marjan Crude Increment Programme is being implemented through multiple work packages, with an estimated total investment of $12bn. The offshore work packages are valued at $5bn, while the onshore package is estimated to be worth up to $7bn.
The Marjan field expansion project forms part of Saudi Aramco’s $18bn investment programme for boosting the production capacity of the Marjan and Berri offshore fields, by 550,000bpd of crude oil and 2.5 billion standard cubic feet per day (bscfd) of gas.
The Marjan field is expected to reach its expanded crude production capacity of 800,000bpd in 2022.
Marjan field discovery and infrastructure development
Discovered in 1967, the Marjan field was originally estimated to contain 2.31 billion barrels of recoverable crude oil.
The existing infrastructure facilities for the field include three offshore gas-oil separator plants (GOSPs).
The Marjan GOSP-1, with a production capacity of 100,000bpd of oil and 175 million standard cubic feet of gas a day (Msfcd), was installed in 1973, while GOSP-2 and GOSP-3 were brought into operation in 1994, bringing the total production capacity of the offshore field to 600,000bpd of oil and 675Msfcd of gas.
The oil and gas produced from the GOSPs are piped onshore to Tanajib for further processing. The operations of the Marjan oilfield are also controlled from the onshore control centre at Tanajib.
Marjan oil field expansion details
Marjan Crude Increment Programme includes the development of an offshore GOSP, named Marjan GOSP-4, within 10km of the GOSP-2 and GOSP-3 facilities, and 24 oil, water and gas injection platforms.
The offshore expansion also includes additional tie-in platforms, production decks, subsea export and infield pipelines, as well as the replacement of decks of two existing tie-in platforms, the removal of existing gas turbine generators, and the installation of two 115kV subsea power and communication cables.
The onshore element of the project involves the expansion of the Tanajib processing complex, with the addition of a gas plant. It also includes a new NGL recovery and fractionation facility and additional gas compression facilities.
Furthermore, a water desalination facility and a co-generation facility are planned to be developed as part of the project.
McDermott was awarded two engineering, procurement, construction and installation (EPCI) contracts for the Marjan field expansion project in July 2019.
The first EPCI contract award for the Marjan GOSP-4 that McDermott received in consortium with China Offshore Oil Engineering Company (COOEC) is valued at $3bn.
The second contract is worth $1.5bn. It was exclusively awarded to McDermott and is for three tie-in platforms, seven wellhead platforms, and the installation of subsea trunk lines and in-field pipelines of a total length of 540km.
Saipem received the EPCI contract for new gas treatment and sulphur recovery units at the Tanajib onshore processing facility for the Marjan increment project in July 2019.
In January 2019, Saipem was also awarded another EPCI contract for the subsea systems of the Marjan oil field expansion, including new platform decks and jackets, as well as the subsea cables and umbilicals.
Sinopec Engineering was contracted for two pipeline projects for the Marjan field expansion in July 2019.
In the same month, L&T Hydrocarbon Engineering (LTHE) was granted the contract for four tie-in platforms, one tie platform module, and nine production deck modules, as well as 217km of subsea pipelines and 145km of subsea cables.
WorleyParsons received the front-end engineering and design (FEED) services contract for the project in July 2017.
Wood Group was awarded a five-year contract for providing engineering and project management services for the Marjan oilfield expansion project in February 2018.
Baker Hughes (BHGE) was contracted for drilling and coiled tubing services for the Marjan oilfield expansion in September 2018.